Employee Benefit Plans (Notes)

12 Months Ended

Dec. 31, 2018

Defined Benefit Plan Disclosure [Line Items]

Employee Benefit Plans [Text Block]

Employee Benefit Plans

Defined Benefit Plans

Domestic Operations

PacifiCorp, MidAmerican Energy and NV Energy sponsor defined benefit pension plans that cover a majority of all employees of BHE and its domestic energy subsidiaries. These pension plans include noncontributory defined benefit pension plans, supplemental executive retirement plans ("SERP") and a restoration plan for certain executives of NV Energy. PacifiCorp, MidAmerican Energy and NV Energy also provide certain postretirement healthcare and life insurance benefits through various plans to eligible retirees.

Net Periodic Benefit Cost

For purposes of calculating the expected return on plan assets, a market-related value is used. The market-related value of plan assets is calculated by spreading the difference between expected and actual investment returns over a five-year period beginning after the first year in which they occur.

Net periodic benefit cost for the plans included the following components for the years ended December 31 (in millions):

	Pension									Other Postretirement
	2018			2017			2016			2018			2017			2016
Service cost	$	21		$	24		$	29		$	9		$	9		$	9
Interest cost	105			116			126			24			29			31
Expected return on plan assets	(164		)	(160		)	(160		)	(41		)	(40		)	(41		)
Settlement	21			—			—			—			—			—
Net amortization	28			25			46			(13		)	(14		)	(12		)
Net periodic benefit cost (credit)	$	11		$	5		$	41		$	(21	)	$	(16	)	$	(13	)

Funded Status

The following table is a reconciliation of the fair value of plan assets for the years ended December 31 (in millions):

	Pension						Other Postretirement
	2018			2017			2018			2017
Plan assets at fair value, beginning of year	$	2,761		$	2,525		$	736		$	666
Employer contributions	38			64			8			5
Participant contributions	—			—			8			10
Actual return on plan assets	(147		)	390			(38		)	106
Settlement	(119		)	(15		)	—			—
Benefits paid	(137		)	(203		)	(50		)	(51		)
Plan assets at fair value, end of year	$	2,396		$	2,761		$	664		$	736

The following table is a reconciliation of the benefit obligations for the years ended December 31 (in millions):

	Pension						Other Postretirement
	2018			2017			2018			2017
Benefit obligation, beginning of year	$	3,006		$	2,952		$	721		$	734
Service cost	21			24			9			9
Interest cost	105			116			24			29
Participant contributions	—			—			8			10
Actuarial (gain) loss	(160		)	132			(40		)	(10		)
Amendment	2			—			—			—
Settlement	(119		)	(15		)	—			—
Benefits paid	(137		)	(203		)	(50		)	(51		)
Benefit obligation, end of year	$	2,718		$	3,006		$	672		$	721
Accumulated benefit obligation, end of year	$	2,709		$	2,988

The funded status of the plans and the amounts recognized on the Consolidated Balance Sheets as of December 31 are as follows (in millions):

	Pension						Other Postretirement
	2018			2017			2018			2017
Plan assets at fair value, end of year	$	2,396		$	2,761		$	664		$	736
Benefit obligation, end of year	2,718			3,006			672			721
Funded status	$	(322	)	$	(245	)	$	(8	)	$	15
Amounts recognized on the Consolidated Balance Sheets:
Other assets	$	20		$	66		$	5		$	32
Other current liabilities	(13		)	(14		)	—			—
Other long-term liabilities	(329		)	(297		)	(13		)	(17		)
Amounts recognized	$	(322	)	$	(245	)	$	(8	)	$	15

The SERPs and restoration plan have no plan assets; however, the Company has Rabbi trusts that hold corporate-owned life insurance and other investments to provide funding for the future cash requirements of the SERPs and restoration plan. The cash surrender value of all of the policies included in the Rabbi trusts, net of amounts borrowed against the cash surrender value, plus the fair market value of other Rabbi trust investments, was $256 million and $272 million as of December 31, 2018 and 2017, respectively. These assets are not included in the plan assets in the above table, but are reflected in noncurrent investments and restricted cash and investments on the Consolidated Balance Sheets.

The fair value of plan assets, projected benefit obligation and accumulated benefit obligation for (1) pension and other postretirement benefit plans with a projected benefit obligation in excess of the fair value of plan assets and (2) pension plans with an accumulated benefit obligation in excess of the fair value of plan assets as of December 31 are as follows (in millions):

	Pension				Other Postretirement
	2018		2017		2018		2017
Fair value of plan assets	$	1,752	$	2,016	$	417	$	126
Projected benefit obligation	$	2,091	$	2,327	$	429	$	143
Accumulated benefit obligation	$	2,085	$	2,316

Unrecognized Amounts

The portion of the funded status of the plans not yet recognized in net periodic benefit cost as of December 31 is as follows (in millions):

	Pension						Other Postretirement
	2018			2017			2018			2017
Net loss	$	747		$	649		$	50		$	14
Prior service credit	—			(3		)	(22		)	(37		)
Regulatory deferrals	(1		)	(4		)	7			7
Total	$	746		$	642		$	35		$	(16	)

A reconciliation of the amounts not yet recognized as components of net periodic benefit cost for the years ended December 31, 2018 and 2017 is as follows (in millions):

							Accumulated
							Other
	Regulatory			Regulatory			Comprehensive
	Asset			Liability			Loss			Total
Pension
Balance, December 31, 2016	$	761		$	(13	)	$	13		$	761
Net (gain) loss arising during the year	(68		)	(29		)	3			(94		)
Net amortization	(28		)	(1		)	4			(25		)
Total	(96		)	(30		)	7			(119		)
Balance, December 31, 2017	665			(43		)	20			642
Net loss (gain) arising during the year	114			43			(6		)	151
Net prior service cost arising during the year	—			—			2			2
Settlement	(21		)	—			—			(21		)
Net amortization	(28		)	—			—			(28		)
Total	65			43			(4		)	104
Balance, December 31, 2018	$	730		$	—		$	16		$	746

							Accumulated
							Other
	Regulatory			Regulatory			Comprehensive
	Asset			Liability			Loss		Total
Other Postretirement
Balance, December 31, 2016	$	55		$	(12	)	$	—	$	43
Net gain arising during the year	(52		)	(21		)	—		(73		)
Net amortization	7			7			—		14
Total	(45		)	(14		)	—		(59		)
Balance, December 31, 2017	10			(26		)	—		(16		)
Net gain arising during the year	23			14			1		38
Net amortization	11			2			—		13
Total	34			16			1		51
Balance, December 31, 2018	$	44		$	(10	)	$	1	$	35

Plan Assumptions

Weighted-average assumptions used to determine benefit obligations and net periodic benefit cost were as follows:

	Pension						Other Postretirement
	2018		2017		2016		2018		2017		2016
Benefit obligations as of December 31:
Discount rate	4.25	%	3.60	%	4.06	%	4.21	%	3.57	%	4.01	%
Rate of compensation increase	2.75	%	2.75	%	2.75	%	NA		NA		NA
Interest crediting rates for cash balance plan
2016	NA		NA		2.57	%	NA		NA		NA
2017	NA		2.49	%	2.57	%	NA		NA		NA
2018	3.38	%	3.06	%	2.57	%	NA		NA		NA
2019	3.54	%	3.06	%	3.01	%	NA		NA		NA
2020	3.54	%	2.72	%	3.01	%	NA		NA		NA
2021	3.56	%	2.72	%	3.01	%	NA		NA		NA
Net periodic benefit cost for the years ended December 31:
Discount rate	3.60	%	4.06	%	4.43	%	3.57	%	4.01	%	4.33	%
Expected return on plan assets	6.36	%	6.55	%	6.78	%	6.44	%	6.73	%	7.03	%
Rate of compensation increase	2.75	%	2.75	%	2.75	%	NA		NA		NA
Interest crediting rate for cash balance plan	3.38	%	2.49	%	2.57	%	NA		NA		NA

In establishing its assumption as to the expected return on plan assets, the Company utilizes the asset allocation and return assumptions for each asset class based on historical performance and forward-looking views of the financial markets.

	2018		2017
Assumed healthcare cost trend rates as of December 31:
Healthcare cost trend rate assumed for next year	6.80	%	7.10	%
Rate that the cost trend rate gradually declines to	5.00	%	5.00	%
Year that the rate reaches the rate it is assumed to remain at	2025		2025

Contributions and Benefit Payments

Employer contributions to the pension and other postretirement benefit plans are expected to be $13 million and $1 million, respectively, during 2019. Funding to the established pension trusts is based upon the actuarially determined costs of the plans and the requirements of the Internal Revenue Code, the Employee Retirement Income Security Act of 1974 and the Pension Protection Act of 2006, as amended. The Company considers contributing additional amounts from time to time in order to achieve certain funding levels specified under the Pension Protection Act of 2006, as amended. The Company's funding policy for its other postretirement benefit plans is to generally contribute an amount equal to the net periodic benefit cost.

The expected benefit payments to participants in the Company's pension and other postretirement benefit plans for 2019 through 2023 and for the five years thereafter are summarized below (in millions):

	Projected Benefit
	Payments
			Other
	Pension		Postretirement
2019	$	221	$	53
2020	224		57
2021	221		55
2022	212		54
2023	212		53
2024-2028	958		243

Plan Assets

Investment Policy and Asset Allocations

The Company's investment policy for its pension and other postretirement benefit plans is to balance risk and return through a diversified portfolio of debt securities, equity securities and other alternative investments. Maturities for debt securities are managed to targets consistent with prudent risk tolerances. The plans retain outside investment advisors to manage plan investments within the parameters outlined by each plan's Pension and Employee Benefits Plans Administrative Committee. The investment portfolio is managed in line with the investment policy with sufficient liquidity to meet near-term benefit payments.

The target allocations (percentage of plan assets) for the Company's pension and other postretirement benefit plan assets are as follows as of December 31, 2018:

		Other
	Pension	Postretirement
	%	%
PacifiCorp:
Debt securities(1)	30-43	33-37
Equity securities(1)	48-65	62-66
Limited partnership interests	6-12	1-3
MidAmerican Energy:
Debt securities(1)	20-50	25-45
Equity securities(1)	60-80	45-80
Real estate funds	2-8	—
Other	0-3	0-5
NV Energy:
Debt securities(1)	53-77	40
Equity securities(1)	23-47	60

(1) For purposes of target allocation percentages and consistent with the plans' investment policy, investment funds are allocated based on the underlying investments in debt and equity securities.

Fair Value Measurements

The following table presents the fair value of plan assets, by major category, for the Company's defined benefit pension plans (in millions):

	Input Levels for Fair Value Measurements(1)
	Level 1		Level 2		Total
As of December 31, 2018:
Cash equivalents	$	8	$	41	$	49
Debt securities:
United States government obligations	160		—		160
International government obligations	—		5		5
Corporate obligations	—		373		373
Municipal obligations	—		29		29
Agency, asset and mortgage-backed obligations	—		123		123
Equity securities:
United States companies	492		1		493
International companies	108		—		108
Investment funds(2)	119		—		119
Total assets in the fair value hierarchy	$	887	$	572	1,459
Investment funds(2) measured at net asset value					792
Limited partnership interests(3) measured at net asset value					104
Real estate funds measured at net asset value					41
Total assets measured at fair value					$	2,396
As of December 31, 2017:
Cash equivalents	$	10	$	76	$	86
Debt securities:
United States government obligations	218		—		218
Corporate obligations	—		350		350
Municipal obligations	—		16		16
Agency, asset and mortgage-backed obligations	—		110		110
Equity securities:
United States companies	622		—		622
International companies	136		—		136
Investment funds(2)	83		20		103
Total assets in the fair value hierarchy	$	1,069	$	572	1,641
Investment funds(2) measured at net asset value					1,019
Limited partnership interests(3) measured at net asset value					63
Real estate funds measured at net asset value					38
Total assets measured at fair value					$	2,761

(1) Refer to Note 14 for additional discussion regarding the three levels of the fair value hierarchy.

(2) Investment funds are comprised of mutual funds and collective trust funds. These funds consist of equity and debt securities of approximately 59% and 41%, respectively, for 2018 and 62% and 38%, respectively, for 2017. Additionally, these funds are invested in United States and international securities of approximately 73% and 27%, respectively, for 2018 and 68% and 32%, respectively, for 2017.

(3) Limited partnership interests include several funds that invest primarily in real estate, buyout, growth equity and venture capital.

The following table presents the fair value of plan assets, by major category, for the Company's defined benefit other postretirement plans (in millions):

	Input Levels for Fair Value Measurements(1)
	Level 1		Level 2		Total
As of December 31, 2018:
Cash equivalents	$	10	$	2	$	12
Debt securities:
United States government obligations	13		—		13
Corporate obligations	—		42		42
Municipal obligations	—		45		45
Agency, asset and mortgage-backed obligations	—		30		30
Equity securities:
United States companies	158		—		158
International companies	6		—		6
Investment funds	202		1		203
Total assets in the fair value hierarchy	$	389	$	120	509
Investment funds measured at net asset value					149
Limited partnership interests measured at net asset value					6
Total assets measured at fair value					$	664
As of December 31, 2017:
Cash equivalents	$	11	$	3	$	14
Debt securities:
United States government obligations	20		—		20
Corporate obligations	—		36		36
Municipal obligations	—		46		46
Agency, asset and mortgage-backed obligations	—		29		29
Equity securities:
United States companies	185		—		185
International companies	8		—		8
Investment funds(2)	219		1		220
Total assets in the fair value hierarchy	$	443	$	115	558
Investment funds(2) measured at net asset value					174
Limited partnership interests(3) measured at net asset value					4
Total assets measured at fair value					$	736

(1) Refer to Note 14 for additional discussion regarding the three levels of the fair value hierarchy.

(2) Investment funds are comprised of mutual funds and collective trust funds. These funds consist of equity and debt securities of approximately 65% and 35%, respectively, for 2018 and 68% and 32%, respectively, for 2017. Additionally, these funds are invested in United States and international securities of approximately 79% and 21%, respectively, for 2018 and 73% and 27%, respectively, for 2017.

(3) Limited partnership interests include several funds that invest primarily in real estate, buyout, growth equity and venture capital.

For level 1 investments, a readily observable quoted market price or net asset value of an identical security in an active market is used to record the fair value. For level 2 investments, the fair value is determined using pricing models based on observable market inputs. Shares of mutual funds not registered under the Securities Act of 1933, private equity limited partnership interests, common and commingled trust funds and investment entities are reported at fair value based on the net asset value per unit, which is used for expedience purposes. A fund's net asset value is based on the fair value of the underlying assets held by the fund less its liabilities.

Foreign Operations

Certain wholly-owned subsidiaries of Northern Powergrid participate in the Northern Powergrid group of the United Kingdom industry-wide Electricity Supply Pension Scheme (the "UK Plan"), which provides pension and other related defined benefits, based on final pensionable pay, to the majority of the employees of Northern Powergrid. The UK Plan is closed to employees hired after July 23, 1997. Employees hired after that date are covered by a defined contribution plan sponsored by a wholly-owned subsidiary of Northern Powergrid.

Net Periodic Benefit Cost

For purposes of calculating the expected return on pension plan assets, a market-related value is used. The market-related value of plan assets is calculated by spreading the difference between expected and actual investment returns over a five-year period beginning after the first year in which they occur.

Net periodic benefit cost for the UK Plan included the following components for the years ended December 31 (in millions):

	2018			2017			2016
Service cost	$	19		$	23		$	20
Interest cost	56			58			72
Expected return on plan assets	(101		)	(100		)	(110		)
Settlement	44			31			—
Net amortization	45			63			44
Net periodic benefit cost	$	63		$	75		$	26

Funded Status

The following table is a reconciliation of the fair value of plan assets for the years ended December 31 (in millions):

	2018			2017
Plan assets at fair value, beginning of year	$	2,368		$	2,169
Employer contributions	60			58
Participant contributions	1			1
Actual return on plan assets	(44		)	145
Settlement	(205		)	(144		)
Benefits paid	(71		)	(68		)
Foreign currency exchange rate changes	(120		)	207
Plan assets at fair value, end of year	$	1,989		$	2,368

The following table is a reconciliation of the benefit obligation for the years ended December 31 (in millions):

	2018			2017
Benefit obligation, beginning of year	$	2,201		$	2,125
Service cost	19			23
Interest cost	56			58
Participant contributions	1			1
Actuarial gain	(87		)	(4		)
Settlement	(182		)	(131		)
Amendment	8			—
Benefits paid	(71		)	(68		)
Foreign currency exchange rate changes	(112		)	197
Benefit obligation, end of year	$	1,833		$	2,201
Accumulated benefit obligation, end of year	$	1,637		$	1,933

The funded status of the UK Plan and the amounts recognized on the Consolidated Balance Sheets as of December 31 are as follows (in millions):

	2018		2017
Plan assets at fair value, end of year	$	1,989	$	2,368
Benefit obligation, end of year	1,833		2,201
Funded status	$	156	$	167
Amounts recognized on the Consolidated Balance Sheets:
Other assets	$	156	$	167

Unrecognized Amounts

The portion of the funded status of the UK Plan not yet recognized in net periodic benefit cost as of December 31 is as follows (in millions):

	2018		2017
Net loss	$	472	$	510
Prior service cost	8		—
Total	$	480	$	510

A reconciliation of the amounts not yet recognized as components of net periodic benefit cost, which are included in accumulated other comprehensive loss on the Consolidated Balance Sheets, for the years ended December 31 is as follows (in millions):

	2018			2017
Balance, beginning of year	$	510		$	590
Net (gain) loss arising during the year	59			(50		)
Net prior service cost arising during the year	8			—
Settlement	(22		)	(17		)
Net amortization	(45		)	(63		)
Foreign currency exchange rate changes	(30		)	50
Total	(30		)	(80		)
Balance, end of year	$	480		$	510

Plan Assumptions

Assumptions used to determine benefit obligations and net periodic benefit cost were as follows:

	2018		2017		2016
Benefit obligations as of December 31:
Discount rate	2.90	%	2.60	%	2.70	%
Rate of compensation increase	3.55	%	3.45	%	3.00	%
Rate of future price inflation	3.05	%	2.95	%	3.00	%
Net periodic benefit cost for the years ended December 31:
Discount rate	2.60	%	2.70	%	3.70	%
Expected return on plan assets	4.90	%	5.00	%	5.60	%
Rate of compensation increase	3.45	%	3.00	%	2.90	%
Rate of future price inflation	2.95	%	3.00	%	2.90	%

Contributions and Benefit Payments

Employer contributions to the UK Plan are expected to be £43 million during 2019. The expected benefit payments to participants in the UK Plan for 2019 through 2023 and for the five years thereafter excluding lump sum settlement elections, using the foreign currency exchange rate as of December 31, 2018, are summarized below (in millions):

2019	$	70
2020	71
2021	73
2022	75
2023	77
2024-2028	416

Plan Assets

Investment Policy and Asset Allocations

The investment policy for the UK Plan is to balance risk and return through a diversified portfolio of debt securities, equity securities, real estate and other asset classes. Maturities for debt securities are managed to targets consistent with prudent risk tolerances. The UK Plan retains outside investment advisors to manage plan investments within the parameters set by the trustees of the UK Plan in consultation with Northern Powergrid. The investment portfolio is managed in line with the investment policy with sufficient liquidity to meet near-term benefit payments. The return on assets assumption is based on a weighted-average of the expected historical performance for the types of assets in which the UK Plan invests.

The target allocations (percentage of plan assets) for the UK Plan assets are as follows as of December 31, 2018:

	%
Debt securities(1)	50-55
Equity securities(1)	35-40
Real estate funds and other	5-15

(1) For purposes of target allocation percentages and consistent with the plans' investment policy, investment funds have been allocated based on the underlying investments in debt and equity securities.

Fair Value Measurements

The following table presents the fair value of the UK Plan assets, by major category (in millions):

	Input Levels for Fair Value Measurements(1)
	Level 1		Level 2		Level 3		Total
As of December 31, 2018:
Cash equivalents	$	3	$	59	$	—	$	62
Debt securities:
United Kingdom government obligations	891		—		—		891
Equity securities:
Investment funds(2)	—		697		—		697
Real estate funds	—		—		239		239
Total	$	894	$	756	$	239	1,889
Investment funds(2) measured at net asset value							100
Total assets measured at fair value							$	1,989
As of December 31, 2017:
Cash equivalents	$	4	$	30	$	—	$	34
Debt securities:
United Kingdom government obligations	870		—		—		870
Equity securities:
Investment funds(2)	—		1,027		—		1,027
Real estate funds	—		—		230		230
Total	$	874	$	1,057	$	230	2,161
Investment funds(2) measured at net asset value							207
Total assets measured at fair value							$	2,368

(1) Refer to Note 14 for additional discussion regarding the three levels of the fair value hierarchy.

(2) Investment funds are comprised of mutual funds and collective trust funds. These funds consist of equity and debt securities of approximately 36% and 64%, respectively, for 2018 and 21% and 79%, respectively, for 2017.

The fair value of the UK Plan's assets are determined similar to the plan assets of the domestic plans as previously discussed.

The following table reconciles the beginning and ending balances of the UK Plan assets measured at fair valueusing significant Level 3 inputs for the years ended December 31 (in millions):

	Real Estate Funds
	2018			2017		2016
Beginning balance	$	230		$	105	$	204
Actual return on plan assets still held at period end	23			6		10
Purchases (sales)	—			104		(80		)
Foreign currency exchange rate changes	(14		)	15		(29		)
Ending balance	$	239		$	230	$	105

Defined Contribution Plans

The Company sponsors various defined contribution plans covering substantially all employees. The Company's contributions vary depending on the plan, but matching contributions are based on each participant's level of contribution, and certain participants receive contributions based on eligible pre-tax annual compensation. Contributions cannot exceed the maximum allowable for tax purposes. The Company's contributions to these plans were $112 million, $103 million and $102 million for the years ended December 31, 2018, 2017 and 2016, respectively.

PacifiCorp [Member]

Defined Benefit Plan Disclosure [Line Items]

Employee Benefit Plans [Text Block]

Employee Benefit Plans

PacifiCorp sponsors defined benefit pension and other postretirement benefit plans that cover the majority of its employees, as well as a defined contribution 401(k) employee savings plan ("401(k) Plan"). In addition, PacifiCorp contributes to a joint trustee pension plan and a subsidiary previously contributed to a multiemployer pension plan for benefits offered to certain bargaining units.

Defined Benefit Plans

PacifiCorp's pension plans include non-contributory defined benefit pension plans, collectively the PacifiCorp Retirement Plan ("Retirement Plan"), and the Supplemental Executive Retirement Plan ("SERP"). The Retirement Plan is closed to all non-union employees hired after January 1, 2008. All non-union Retirement Plan participants hired prior to January 1, 2008 that did not elect to receive equivalent fixed contributions to the 401(k) Plan effective January 1, 2009 earned benefits based on a cash balance formula through December 31, 2016. Effective January 1, 2017, non-union employee participants with a cash balance benefit in the Retirement Plan are no longer eligible to receive pay credits in their cash balance formula. In general for union employees, benefits under the Retirement Plan were frozen at various dates from December 31, 2007 through December 31, 2011 as they are now being provided with enhanced 401(k) Plan benefits. However, certain limited union Retirement Plan participants continue to earn benefits under the Retirement Plan based on the employee's years of service and a final average pay formula. The SERP was closed to new participants as of March 21, 2006 and froze future accruals for active participants as of December 31, 2014.

During 2018, the Retirement Plan incurred a settlement charge of $22 million as a result of excess lump sum distributions over the defined threshold for the year ended December 31, 2018.

PacifiCorp's other postretirement benefit plan provides healthcare and life insurance benefits to eligible retirees.

Net Periodic Benefit Cost

For purposes of calculating the expected return on plan assets, a market-related value is used. The market-related value of plan assets is calculated by spreading the difference between expected and actual investment returns over a five-year period beginning after the first year in which they occur.

Net periodic benefit cost for the plans included the following components for the years ended December 31 (in millions):

	Pension									Other Postretirement
	2018			2017			2016			2018			2017			2016
Service cost	$	—		$	—		$	4		$	2		$	2		$	2
Interest cost	43			49			54			11			14			15
Expected return on plan assets	(72		)	(72		)	(75		)	(21		)	(21		)	(21		)
Settlement	22			—			—			—			—			—
Net amortization	13			14			34			(6		)	(6		)	(5		)
Net periodic benefit cost (credit)	$	6		$	(9	)	$	17		$	(14	)	$	(11	)	$	(9	)

Funded Status

The following table is a reconciliation of the fair value of plan assets for the years ended December 31 (in millions):

	Pension						Other Postretirement
	2018			2017			2018			2017
Plan assets at fair value, beginning of year	$	1,111		$	999		$	332		$	302
Employer contributions	4			54			1			1
Participant contributions	—			—			5			7
Actual return on plan assets	(52		)	166			(16		)	49
Settlement	(52		)	—			—			—
Benefits paid	(69		)	(108		)	(25		)	(27		)
Plan assets at fair value, end of year	$	942		$	1,111		$	297		$	332

The following table is a reconciliation of the benefit obligations for the years ended December 31 (in millions):

	Pension						Other Postretirement
	2018			2017			2018			2017
Benefit obligation, beginning of year	$	1,251		$	1,276		$	331		$	358
Service cost	—			—			2			2
Interest cost	43			49			11			14
Participant contributions	—			—			5			7
Actuarial (gain) loss	(68		)	34			(26		)	(23		)
Settlement	(52		)	—						—
Benefits paid	(69		)	(108		)	(25		)	(27		)
Benefit obligation, end of year	$	1,105		$	1,251		$	298		$	331
Accumulated benefit obligation, end of year	$	1,105		$	1,251

The funded status of the plans and the amounts recognized on the Consolidated Balance Sheets as of December 31 are as follows (in millions):

	Pension						Other Postretirement
	2018			2017			2018			2017
Plan assets at fair value, end of year	$	942		$	1,111		$	297		$	332
Less - Benefit obligation, end of year	1,105			1,251			298			331
Funded status	$	(163	)	$	(140	)	$	(1	)	$	1
Amounts recognized on the Consolidated Balance Sheets:
Other assets	$	3		$	5		$	—		$	1
Other current liabilities	(4		)	(4		)	—			—
Other long-term liabilities	(162		)	(141		)	(1		)	—
Amounts recognized	$	(163	)	$	(140	)	$	(1	)	$	1

The SERP has no plan assets; however, PacifiCorp has a Rabbi trust that holds corporate-owned life insurance and other investments to provide funding for the future cash requirements of the SERP. The cash surrender value of all of the policies included in the Rabbi trust, net of amounts borrowed against the cash surrender value, plus the fair market value of other Rabbi trust investments, was $52 million and $60 million as of December 31, 2018 and 2017, respectively. These assets are not included in the plan assets in the above table, but are reflected in cash and cash equivalents, totaling $1 million and $9 million as of December 31, 2018 and 2017, respectively, and noncurrent other assets, totaling $51 million as of December 31, 2018 and 2017 on the Consolidated Balance Sheets.

The projected benefit obligation for the pension and other postretirement plans were in excess of the fair value of their respective plans assets as of December 31, 2018. The accumulated benefit obligation for the pension plans was in excess of the fair value of plan assets as of December 31, 2018.

Unrecognized Amounts

The portion of the funded status of the plans not yet recognized in net periodic benefit cost as of December 31 is as follows (in millions):

	Pension						Other Postretirement
	2018			2017			2018			2017
Net loss (gain)	$	461		$	442		$	(2	)	$	(12	)
Prior service credit	—			—			—			(6		)
Regulatory deferrals	(1		)	(4		)	7			7
Total	$	460		$	438		$	5		$	(11	)

A reconciliation of the amounts not yet recognized as components of net periodic benefit cost for the years ended December 31, 2018 and 2017 is as follows (in millions):

				Accumulated
				Other
	Regulatory			Comprehensive
	Asset			Loss			Total
Pension
Balance, December 31, 2016	$	491		$	20		$	511
Net (gain) loss arising during the year	(60		)	1			(59		)
Net amortization	(13		)	(1		)	(14		)
Total	(73		)	—			(73		)
Balance, December 31, 2017	418			20			438
Net loss (gain) arising during the year	59			(2		)	57
Net amortization	(12		)	(1		)	(13		)
Settlement	(22		)	—			(22		)
Total	25			(3		)	22
Balance, December 31, 2018	$	443		$	17		$	460

	Regulatory
	Asset (Liability)
Other Postretirement
Balance, December 31, 2016	$	34
Net gain arising during the year	(51		)
Net amortization	6
Total	(45		)
Balance, December 31, 2017	(11		)
Net loss arising during the year	10
Net amortization	6
Total	16
Balance, December 31, 2018	$	5

Plan Assumptions

Weighted-average assumptions used to determine benefit obligations and net periodic benefit cost were as follows:

	Pension						Other Postretirement
	2018		2017		2016		2018		2017		2016
Benefit obligations as of December 31:
Discount rate	4.25	%	3.60	%	4.05	%	4.25	%	3.60	%	4.05	%
Rate of compensation increase	N/A		N/A		N/A		N/A		N/A		N/A
Interest crediting rates for cash balance plan (1)(2)(3)	3.40	%	1.61	%	2.06	%	N/A		N/A		N/A
Net periodic benefit cost for the years ended December 31:
Discount rate	3.60	%	4.05	%	4.40	%	3.60	%	4.05	%	4.35	%
Expected return on plan assets	7.00		7.25		7.50		6.86		7.25		7.50
Rate of compensation increase	N/A		N/A		2.75		N/A		N/A		N/A

(1) 2018 Cash Balance Interest Crediting Rate assumption is 3.40% for 2019 and all future years for nonunion participants and 3.15% for 2019-2020 and 3.25% for 2021+ for union participants.

(2) 2017 Cash Balance Interest Crediting Rate assumption was 2.26% for 2018-2019 and 1.60% for 2020+ for nonunion participants and 2.78% for 2018-2019 and 2.60% for 2020+ for union participants.

(3) 2016 Cash Balance Interest Crediting Rate assumption was 1.44% for 2017-2018 and 2.05% for 2019+ for nonunion participants and 2.35% for 2017-2018 and 3.05% for 2019+ for union participants.

In establishing its assumption as to the expected return on plan assets, PacifiCorp utilizes the asset allocation and return assumptions for each asset class based on historical performance and forward-looking views of the financial markets.

As a result of a plan amendment effective on January 1, 2017, the benefit obligation for the Retirement Plan is no longer affected by future increases in compensation. As a result of a labor settlement reached with UMWA in December 2014, the benefit obligation for the other postretirement plan is no longer affected by healthcare cost trends.

Contributions and Benefit Payments

Employer contributions to the pension and other postretirement benefit plans are expected to be $4 million and $0 million, respectively, during 2019. Funding to PacifiCorp's Retirement Plan trust is based upon the actuarially determined costs of the plan and the requirements of the Internal Revenue Code, the Employee Retirement Income Security Act of 1974 ("ERISA") and the Pension Protection Act of 2006, as amended ("PPA"). PacifiCorp considers contributing additional amounts from time to time in order to achieve certain funding levels specified under the PPA. PacifiCorp's funding of its other postretirement benefit plan is subject to tax deductibility and subordination limits and other considerations.

The expected benefit payments to participants in PacifiCorp's pension and other postretirement benefit plans for 2019 through 2023 and for the five years thereafter are summarized below (in millions):

	Projected Benefit Payments
	Pension		Other Postretirement
2019	$	105	$	24
2020	102		26
2021	98		23
2022	92		22
2023	88		21
2024-2028	369		95

Plan Assets

Investment Policy and Asset Allocations

PacifiCorp's investment policy for its pension and other postretirement benefit plans is to balance risk and return through a diversified portfolio of debt securities, equity securities and other alternative investments. Maturities for debt securities are managed to targets consistent with prudent risk tolerances. The plans retain outside investment advisors to manage plan investments within the parameters outlined by the PacifiCorp Pension Committee. The investment portfolio is managed in line with the investment policy with sufficient liquidity to meet near-term benefit payments.

The target allocations (percentage of plan assets) for PacifiCorp's pension and other postretirement benefit plan assets are as follows as of December 31, 2018:

	Pension(1)	Other Postretirement(1)
	%	%
Debt securities(2)	30 - 43	33 - 37
Equity securities(2)	48 - 65	62 - 66
Limited partnership interests	6 - 12	1 - 3

(1) PacifiCorp's Retirement Plan trust includes a separate account that is used to fund benefits for the other postretirement benefit plan. In addition to this separate account, the assets for the other postretirement benefit plan are held in Voluntary Employees' Beneficiary Association ("VEBA") trusts, each of which has its own investment allocation strategies. Target allocations for the other postretirement benefit plan include the separate account of the Retirement Plan trust and the VEBA trusts.

(2) For purposes of target allocation percentages and consistent with the plans' investment policy, investment funds are allocated based on the underlying investments in debt and equity securities.

Fair Value Measurements

The following table presents the fair value of plan assets, by major category, for PacifiCorp's defined benefit pension plan (in millions):

	Input Levels for Fair Value Measurements
	Level 1(1)		Level 2(1)		Level 3(1)		Total
As of December 31, 2018:
Cash equivalents	$	—	$	11	$	—	$	11
Debt securities:
United States government obligations	4		—		—		4
International government obligations	—		1		—		1
Corporate obligations	—		88		—		88
Municipal obligations	—		10		—		10
Agency, asset and mortgage-backed obligations	—		43		—		43
Equity securities:
United States companies	327		—		—		327
International companies	15		—		—		15
Investment funds(2)	54		—		—		54
Total assets in the fair value hierarchy	$	400	$	153	$	—	553
Investment funds(2) measured at net asset value							285
Limited partnership interests(3) measured at net asset value							104
Investments at fair value							$	942
As of December 31, 2017:
Cash equivalents	$	—	$	43	$	—	$	43
Debt securities:
United States government obligations	45		—		—		45
Corporate obligations	—		60		—		60
Municipal obligations	—		9		—		9
Agency, asset and mortgage-backed obligations	—		37		—		37
Equity securities:
United States companies	416		—		—		416
International companies	22		—		—		22
Total assets in the fair value hierarchy	$	483	$	149	$	—	632
Investment funds(2) measured at net asset value							416
Limited partnership interests(3) measured at net asset value							63
Investments at fair value							$	1,111

(1) Refer to Note 12 for additional discussion regarding the three levels of the fair value hierarchy.

(2) Investment funds are substantially comprised of mutual funds and collective trust funds. These funds consist of equity and debt securities of approximately55% and 45% respectively, for 2018 and 60% and 40%, respectively, for 2017, and are invested in United States and international securities of approximately 68% and 32%, respectively, for 2018 and 57% and 43%, respectively, for 2017.

(3) Limited partnership interests include several funds that invest primarily in real estate, buyout, growth equity and venture capital.

The following table presents the fair value of plan assets, by major category, for PacifiCorp's defined benefit other postretirement plan (in millions):

	Input Levels for Fair Value Measurements
	Level 1(1)		Level 2(1)		Level 3(1)		Total
As of December 31, 2018:
Cash and cash equivalents	$	4	$	1	$	—	$	5
Debt securities:
United States government obligations	3		—		—		3
Corporate obligations	—		23		—		23
Municipal obligations	—		2		—		2
Agency, asset and mortgage-backed obligations	—		17		—		17
Equity securities:
United States companies	83		—		—		83
International companies	4		—		—		4
Investment funds(2)	38		—		—		38
Total assets in the fair value hierarchy	132		43		—		175
Investment funds(2) measured at net asset value							116
Limited partnership interests(3) measured at net asset value							6
Investments at fair value							$	297
As of December 31, 2017:
Cash and cash equivalents	$	4	$	3	$	—	$	7
Debt securities:
United States government obligations	11		—		—		11
Corporate obligations	—		16		—		16
Municipal obligations	—		2		—		2
Agency, asset and mortgage-backed obligations	—		16		—		16
Equity securities:
United States companies	98		—		—		98
International companies	6		—		—		6
Investment funds(2)	32		—		—		32
Total assets in the fair value hierarchy	151		37		—		188
Investment funds(2) measured at net asset value							140
Limited partnership interests(3) measured at net asset value							4
Investments at fair value							$	332

(1) Refer to Note 12 for additional discussion regarding the three levels of the fair value hierarchy.

(2) Investment funds are substantially comprised of mutual funds and collective trust funds. These funds consist of equity and debt securities of approximately59% and 41%, respectively, for 2018 and 63% and 37%, respectively, for 2017, and are invested in United States and international securities of approximately 90% and 10%, respectively, for 2018 and 77% and 23%, respectively, for 2017.

(3) Limited partnership interests include several funds that invest primarily in real estate, buyout, growth equity and venture capital.

For level 1 investments, a readily observable quoted market price or net asset value of an identical security in an active market is used to record the fair value. For level 2 investments, the fair value is determined using pricing models based on observable market inputs. Shares of mutual funds not registered under the Securities Act of 1933, private equity limited partnership interests, common and commingled trust funds and investment entities are reported at fair value based on the net asset value per unit, which is used for expedience purposes. A fund's net asset value is based on the fair value of the underlying assets held by the fund less its liabilities.

Multiemployer and Joint Trustee Pension Plans

PacifiCorp contributes to the PacifiCorp/IBEW Local 57 Retirement Trust Fund ("Local 57 Trust Fund") (plan number 001) and its subsidiary, Energy West Mining Company, previously contributed to the UMWA 1974 Pension Plan (plan number 002). Contributions to these pension plans are based on the terms of collective bargaining agreements.

As a result of the Utah Mine Disposition and United Mine Workers of America ("UMWA") labor settlement, PacifiCorp's subsidiary, Energy West Mining Company, triggered involuntary withdrawal from the UMWA 1974 Pension Plan in June 2015 when the UMWA employees ceased performing work for the subsidiary. PacifiCorp recorded its estimate of the withdrawal obligation in December 2014 when withdrawal was considered probable and deferred the portion of the obligation considered probable of recovery to a regulatory asset. PacifiCorp has subsequently revised its estimate due to changes in facts and circumstances for a withdrawal occurring by July 2015. As communicated in a letter received in August 2016, the plan trustees have determined a withdrawal liability of $115 million. Energy West Mining Company began making installment payments in November 2016 and has the option to elect a lump sum payment to settle the withdrawal obligation. The ultimate amount paid by Energy West Mining Company to settle the obligation is dependent on a variety of factors, including the results of ongoing negotiations with the plan trustees.

The Local 57 Trust Fund is a joint trustee plan such that the board of trustees is represented by an equal number of trustees from PacifiCorp and the union. The Local 57 Trust Fund was established pursuant to the provisions of the Taft-Hartley Act and although formed with the ability for other employers to participate in the plan, there are no other employers that participate in this plan.

The risk of participating in multiemployer pension plans generally differs from single-employer plans in that assets are pooled such that contributions by one employer may be used to provide benefits to employees of other participating employers and plan assets cannot revert back to employers. If an employer ceases participation in the plan, the employer may be obligated to pay a withdrawal liability based on the participants' unfunded, vested benefits in the plan. This occurred as a result of Energy West Mining Company's withdrawal from the UMWA 1974 Pension Plan. If participating employers withdraw from a multiemployer plan, the unfunded obligations of the plan may be borne by the remaining participating employers, including any employers that withdrew during the three years prior to a mass withdrawal.

The following table presents PacifiCorp's participation in individually significant joint trustee and multiemployer pension plans for the years ended December 31 (dollars in millions):

		PPA zone status or
		plan funded status percentage for
		plan years beginning July 1,					Contributions(1)
Plan name	Employer Identification Number	2018	2017	2016	Funding improvement plan	Surcharge imposed under PPA(1)	2018		2017		2016		Year contributions to plan exceeded more than 5% of total contributions(2)
Local 57 Trust Fund	87-0640888	At least 80%	At least 80%	At least 80%	None	None	$	7	$	7	$	8	2016, 2015, 2014

(1) PacifiCorp's minimum contributions to the plan are based on the amount of wages paid to employees covered by the Local 57 Trust Fund collective bargaining agreements, subject to ERISA minimum funding requirements.

(2) For the Local 57 Trust Fund, information is for plan years beginning July 1, 2016, 2015 and 2014. Information for the plan year beginning July 1, 2017 is not yet available.

The current collective bargaining agreements governing the Local 57 Trust Fund expire in 2023.

Defined Contribution Plan

PacifiCorp's 401(k) plan covers substantially all employees. PacifiCorp's matching contributions are based on each participant's level of contribution and, as of January 1, 2018, all participants receive contributions based on eligible pre-tax annual compensation. Contributions cannot exceed the maximum allowable for tax purposes. PacifiCorp's contributions to the 401(k) plan were $39 million, $39 million and $34 million for the years ended December 31, 2018, 2017 and 2016, respectively.

MidAmerican Energy Company [Member]

Defined Benefit Plan Disclosure [Line Items]

Employee Benefit Plans [Text Block]

Employee Benefit Plans

Defined Benefit Plan

MidAmerican Energy sponsors a noncontributory defined benefit pension plan covering a majority of all employees of BHE and its domestic energy subsidiaries other than PacifiCorp and NV Energy, Inc. Benefit obligations under the plan are based on a cash balance arrangement for salaried employees and most union employees and final average pay formulas for other union employees. MidAmerican Energy also maintains noncontributory, nonqualified defined benefit supplemental executive retirement plans ("SERP") for certain active and retired participants. In 2018, the defined benefit pension plan recorded a settlement gain of $1 million for previously unrecognized gains as a result of excess lump sum distributions over the defined threshold for the year ended December 31, 2018.

MidAmerican Energy also sponsors certain postretirement healthcare and life insurance benefits covering substantially all retired employees of BHE and its domestic energy subsidiaries other than PacifiCorp and NV Energy, Inc. Under the plans, a majority of all employees of the participating companies may become eligible for these benefits if they reach retirement age. New employees are not eligible for benefits under the plans. MidAmerican Energy has been allowed to recover accrued pension and other postretirement benefit costs in its electric and gas service rates.

Net Periodic Benefit Cost

For purposes of calculating the expected return on pension plan assets, a market-related value is used. The market-related value of plan assets is calculated by spreading the difference between expected and actual investment returns on equity investments over a five-year period beginning after the first year in which they occur.

MidAmerican Energy bills to and is reimbursed currently for affiliates' share of the net periodic benefit costs from all plans in which such affiliates participate. In 2018, 2017 and 2016, MidAmerican Energy's share of the pension net periodic benefit (credit) cost was $(9) million, $(6) million and $(2) million, respectively. MidAmerican Energy's share of the other postretirement net periodic benefit (credit) cost in 2018, 2017 and 2016 totaled $(2) million, $(1) million and $(1) million, respectively.

Net periodic benefit cost for the plans of MidAmerican Energy and the aforementioned affiliates included the following components for the years ended December 31 (in millions):

	Pension									Other Postretirement
	2018			2017			2016			2018			2017			2016
Service cost	$	9		$	9		$	10		$	5		$	5		$	5
Interest cost	28			31			34			8			9			10
Expected return on plan assets	(44		)	(44		)	(44		)	(13		)	(14		)	(13		)
Settlement	(1		)	—			—			—			—			—
Net amortization	2			2			2			(4		)	(4		)	(4		)
Net periodic benefit (credit) cost	$	(6	)	$	(2	)	$	2		$	(4	)	$	(4	)	$	(2	)

Funded Status

The following table is a reconciliation of the fair value of plan assets for the years ended December 31 (in millions):

	Pension						Other Postretirement
	2018			2017			2018			2017
Plan assets at fair value, beginning of year	$	745		$	684		$	277		$	252
Employer contributions	7			7			1			1
Participant contributions	—			—			1			1
Actual return on plan assets	(39		)	114			(17		)	36
Settlement	(37		)	—			—			—
Benefits paid	(32		)	(60		)	(15		)	(13		)
Plan assets at fair value, end of year	$	644		$	745		$	247		$	277

The following table is a reconciliation of the benefit obligations for the years ended December 31 (in millions):

	Pension						Other Postretirement
	2018			2017			2018			2017
Benefit obligation, beginning of year	$	799		$	773		$	246		$	233
Service cost	9			9			5			5
Interest cost	28			31			8			9
Participant contributions	—			—			1			1
Actuarial (gain) loss	(33		)	46			(3		)	11
Plan amendments	2			—			—			—
Settlement	(37		)	—			—			—
Benefits paid	(32		)	(60		)	(15		)	(13		)
Benefit obligation, end of year	$	736		$	799		$	242		$	246
Accumulated benefit obligation, end of year	$	733		$	790

The funded status of the plans and the amounts recognized on the Balance Sheets as of December 31 are as follows (in millions):

	Pension						Other Postretirement
	2018			2017			2018		2017
Plan assets at fair value, end of year	$	644		$	745		$	247	$	277
Less - Benefit obligation, end of year	736			799			242		246
Funded status	$	(92	)	$	(54	)	$	5	$	31
Amounts recognized on the Balance Sheets:
Other assets	$	17		$	66		$	5	$	31
Other current liabilities	(7		)	(8		)	—		—
Other liabilities	(102		)	(112		)	—		—
Amounts recognized	$	(92	)	$	(54	)	$	5	$	31

The SERP has no plan assets; however, MidAmerican Energy and BHE have Rabbi trusts that hold corporate-owned life insurance and other investments to provide funding for the future cash requirements of the SERP. The cash surrender value of all of the policies included in MidAmerican Energy's Rabbi trusts, net of amounts borrowed against the cash surrender value, plus the fair market value of other Rabbi trust investments, was $116 million and $118 million as of December 31, 2018 and 2017. These assets are not included in the plan assets in the above table, but are reflected in investments and restricted investments on the Balance Sheets. The accumulated benefit obligation and projected benefit obligation for the SERP was $109 million and $109 million for 2018 and $118 million and $120 million for 2017, respectively.

Unrecognized Amounts

The portion of the funded status of the plans not yet recognized in net periodic benefit cost as of December 31 is as follows (in millions):

	Pension					Other Postretirement
	2018		2017			2018			2017
Net loss (gain)	$	40	$	(11	)	$	48		$	23
Prior service cost (credit)	1		1			(20		)	(25		)
Total	$	41	$	(10	)	$	28		$	(2	)

MidAmerican Energy sponsors pension and other postretirement benefit plans on behalf of certain of its affiliates in addition to itself, and therefore, the portion of the funded status of the respective plans that has not yet been recognized in net periodic benefit cost is attributable to multiple entities. Additionally, substantially all of MidAmerican Energy's portion of such amounts is either refundable to or recoverable from its customers and is reflected as regulatory liabilities and regulatory assets.

A reconciliation of the amounts not yet recognized as components of net periodic benefit cost for the years ended December 31, 2018 and 2017 is as follows (in millions):

	Regulatory Asset			Regulatory Liability			Receivables (Payables) with Affiliates		Total
Pension
Balance, December 31, 2016	$	22		$	(12	)	$	6	$	16
Net loss (gain) arising during the year	4			(29		)	1		(24		)
Net amortization	(2		)	—			—		(2		)
Total	2			(29		)	1		(26		)
Balance, December 31, 2017	24			(41		)	7		(10		)
Net loss arising during the year	2			41			9		52
Net amortization	(2		)	—			—		(2		)
Settlement	1			—			—		1
Total	1			41			9		51
Balance, December 31, 2018	$	25		$	—		$	16	$	41

	Regulatory Asset			Receivables (Payables) with Affiliates			Total
Other Postretirement
Balance, December 31, 2016	$	18		$	(13	)	$	5
Net gain arising during the year	(7		)	(4		)	(11		)
Net amortization	3			1			4
Total	(4		)	(3		)	(7		)
Balance, December 31, 2017	14			(16		)	(2		)
Net loss arising during the year	20			6			26
Net amortization	3			1			4
Total	23			7			30
Balance, December 31, 2018	$	37		$	(9	)	$	28

Actuarial losses for 2018 impacting the December 31, 2018 funded status for the pension and other postretirement plans are due to lower than assumed actual return on plan assets, offset by an increase in the discount rate assumptions from that assumed at December 31, 2017.

Plan Assumptions

Assumptions used to determine benefit obligations and net periodic benefit cost were as follows:

	Pension						Other Postretirement
	2018		2017		2016		2018		2017		2016
Benefit obligations as of December 31:
Discount rate	4.25	%	3.60	%	4.10	%	4.15	%	3.50	%	3.90	%
Rate of compensation increase	2.75	%	2.75	%	2.75	%	N/A		N/A		N/A
Interest crediting rates for cash balance plan
2016	N/A		N/A		1.18	%	N/A		N/A		N/A
2017	N/A		1.44	%	1.44	%	N/A		N/A		N/A
2018	2.26	%	2.26	%	1.44	%	N/A		N/A		N/A
2019	3.40	%	2.26	%	2.10	%	N/A		N/A		N/A
2020	3.40	%	1.60	%	2.10	%	N/A		N/A		N/A
2021 and beyond	3.40	%	1.60	%	2.10	%	N/A		N/A		N/A
Net periodic benefit cost for the years ended December 31:
Discount rate	3.60	%	4.10	%	4.50	%	3.50	%	3.90	%	4.25	%
Expected return on plan assets(1)	6.50	%	6.75	%	7.00	%	6.25	%	6.50	%	6.75	%
Rate of compensation increase	2.75	%	2.75	%	2.75	%	N/A		N/A		N/A
Interest crediting rates for cash balance plan	2.26	%	1.44	%	1.18	%	N/A		N/A		N/A

(1) Amounts reflected are pre-tax values. Assumed after-tax returns for a taxable, non-union other postretirement plan were 4.13% for 2018, and 4.81% for 2017, and 5.00% for 2016.

In establishing its assumption as to the expected return on plan assets, MidAmerican Energy utilizes the asset allocation and return assumptions for each asset class based on historical performance and forward-looking views of the financial markets.

	2018		2017
Assumed healthcare cost trend rates as of December 31:
Healthcare cost trend rate assumed for next year	6.80	%	7.10	%
Rate that the cost trend rate gradually declines to	5.00	%	5.00	%
Year that the rate reaches the rate it is assumed to remain at	2025		2025

Contributions and Benefit Payments

Employer contributions to the pension and other postretirement benefit plans are expected to be $7 million and $1 million, respectively, during 2019. Funding to MidAmerican Energy's pension benefit plan trust is based upon the actuarially determined costs of the plan and the requirements of the Internal Revenue Code, the Employee Retirement Income Security Act of 1974 and the Pension Protection Act of 2006, as amended. MidAmerican Energy considers contributing additional amounts from time to time in order to achieve certain funding levels specified under the Pension Protection Act of 2006, as amended. MidAmerican Energy's funding policy for its other postretirement benefit plan is to generally contribute amounts consistent with its rate regulatory arrangements.

Net periodic benefit costs assigned to MidAmerican Energy affiliates are reimbursed currently in accordance with its intercompany administrative services agreement. The expected benefit payments to participants in MidAmerican Energy's pension and other postretirement benefit plans for 2019 through 2023 and for the five years thereafter are summarized below (in millions):

	Projected Benefit Payments
	Pension		Other Postretirement
2019	$	61	$	19
2020	62		21
2021	61		22
2022	60		22
2023	58		22
2024-2028	262		102

Plan Assets

Investment Policy and Asset Allocations

MidAmerican Energy's investment policy for its pension and other postretirement benefit plans is to balance risk and return through a diversified portfolio of debt securities, equity securities and other alternative investments. Maturities for debt securities are managed to targets consistent with prudent risk tolerances. The plans retain outside investment advisors to manage plan investments within the parameters outlined by the MidAmerican Energy Pension and Employee Benefits Plans Administrative Committee. The investment portfolio is managed in line with the investment policy with sufficient liquidity to meet near-term benefit payments.

The target allocations (percentage of plan assets) for MidAmerican Energy's pension and other postretirement benefit plan assets are as follows as of December 31, 2018:

	Pension	Other Postretirement
	%	%
Debt securities(1)	20-50	25-45
Equity securities(1)	60-80	45-80
Real estate funds	2-8	—
Other	0-3	0-5

(1) For purposes of target allocation percentages and consistent with the plans' investment policy, investment funds are allocated based on the underlying investments in debt and equity securities.

Fair Value Measurements

The following table presents the fair value of plan assets, by major category, for MidAmerican Energy's defined benefit pension plan (in millions):

	Input Levels for Fair Value Measurements(1)
	Level 1		Level 2		Level 3		Total
As of December 31, 2018:
Cash equivalents	$	—	$	20	$	—	$	20
Debt securities:
United States government obligations	6		—		—		6
Corporate obligations	—		63		—		63
Municipal obligations	—		6		—		6
Agency, asset and mortgage-backed obligations	—		37		—		37
Equity securities:
United States companies	111		—		—		111
International companies	35		—		—		35
Investment funds(2)	65		—		—		65
Total assets in the hierarchy	$	217	$	126	$	—	—
Investment funds(2) measured at net asset value							260
Real estate funds measured at net asset value							41
Total assets measured at fair value							$	644
As of December 31, 2017:
Cash equivalents	$	—	$	17	$	—	$	17
Debt securities:
United States government obligations	21		—		—		21
Corporate obligations	—		59		—		59
Municipal obligations	—		7		—		7
Agency, asset and mortgage-backed obligations	—		33		—		33
Equity securities:
United States companies	137		—		—		137
International companies	44		—		—		44
Investment funds(2)	74		—		—		74
Total assets in the hierarchy	$	276	$	116	$	—	392
Investment funds(2) measured at net asset value							315
Real estate funds measured at net asset value							38
Total assets measured at fair value							$	745

(1) Refer to Note 12 for additional discussion regarding the three levels of the fair value hierarchy.

(2) Investment funds are comprised of mutual funds and collective trust funds. These funds consist of equity and debt securities of approximately 65% and 35%, respectively, for 2018 and 69% and 31%, respectively, for 2017. Additionally, these funds are invested in United States and international securities of approximately 74% and 26%, respectively, for 2018 and 72% and 28%, respectively, for 2017.

The following table presents the fair value of plan assets, by major category, for MidAmerican Energy's defined benefit other postretirement plans (in millions):

	Input Levels for Fair Value Measurements(1)
	Level 1		Level 2		Level 3		Total
As of December 31, 2018:
Cash equivalents	$	5	$	—	$	—	$	5
Debt securities:
United States government obligations	6		—		—		6
Corporate obligations	—		12		—		12
Municipal obligations	—		43		—		43
Agency, asset and mortgage-backed obligations	—		12		—		12
Equity securities:
United States companies	73		—		—		73
Investment funds(2)	96		—		—		96
Total assets measured at fair value	$	180	$	67	$	—	$	247
As of December 31, 2017:
Cash equivalents	$	6	$	—	$	—	$	6
Debt securities:
United States government obligations	5		—		—		5
Corporate obligations	—		14		—		14
Municipal obligations	—		44		—		44
Agency, asset and mortgage-backed obligations	—		12		—		12
Equity securities:
United States companies	84		—		—		84
Investment funds(2)	112		—		—		112
Total assets measured at fair value	$	207	$	70	$	—	$	277

(1) Refer to Note 12 for additional discussion regarding the three levels of the fair value hierarchy.

(2) Investment funds are comprised of mutual funds and collective trust funds. These funds consist of equity and debt securities of approximately 78% and 22%, respectively, for 2018 and 81% and 19%, respectively, for 2017. Additionally, these funds are invested in United States and international securities of approximately 41% and 59%, respectively, for 2018 and 42% and 58%, respectively, for 2017.

For level 1 investments, a readily observable quoted market price or net asset value of an identical security in an active market is used to record the fair value. For level 2 investments, the fair value is determined using pricing models based on observable market inputs. Shares of mutual funds not registered under the Securities Act of 1933, private equity limited partnership interests, common and commingled trust funds and investment entities are reported at fair value based on the net asset value per unit, which is used for expedience purposes. A fund's net asset value is based on the fair value of the underlying assets held by the fund less its liabilities.

Defined Contribution Plan

MidAmerican Energy sponsors a defined contribution plan ("401(k) plan") covering substantially all employees. MidAmerican Energy's matching contributions are based on each participant's level of contribution, and certain participants receive contributions based on eligible pre-tax annual compensation. Contributions cannot exceed the maximum allowable for tax purposes. Certain participants now receive enhanced benefits in the 401(k) plan and no longer accrue benefits in the noncontributory defined benefit pension plans. MidAmerican Energy's contributions to the plan were $22 million, $20 million, and $20 million for the years ended December 31, 2018, 2017 and 2016, respectively.

MidAmerican Funding, LLC and Subsidiaries [Domain]

Defined Benefit Plan Disclosure [Line Items]

Employee Benefit Plans [Text Block]

Employee Benefit Plans

Refer to Note 10 of MidAmerican Energy's Notes to Financial Statements for additional information regarding MidAmerican Funding's pension, supplemental retirement and postretirement benefit plans.

Pension and postretirement costs allocated by MidAmerican Funding to its parent and other affiliates in each of the years ended December 31, were as follows (in millions):

	2018			2017			2016
Pension costs	$	3		$	4		$	4
Other postretirement costs	(2		)	(3		)	(1		)